Trucking Firm TFI International to Relocate from Canada to the US

Trucking company TFI International is planning on re-domiciling its business from Canada to the U.S.

Alain Bedard, chairman, president and CEO of TFI International, said in an earnings call that the decision was made to “better align with our shareholder base and commercial presence.”

Approximately 70 percent of the Montreal-based company’s business is domestic trucking in the U.S., while 25 percent remains in Canada. The remaining roughly 4 percent encompasses cross-border trade.

As of last summer, 49.9 percent of shareholders were based in the U.S., Bedard said, above the 45 percent that were Canadian.

TFI’s subsidiaries include less than truckload (LTL) carrier TForce Freight and flatbed trucking provider Daseke, which the company acquired for $1.1 billion in April 2024.

Bedard cited that the move is easier for Daseke since the company has a contract with the U.S. Department of Defense.

Operationally, TFI does not have current plans to move employees from Canada to the U.S. The trucking company has offices in Montreal, Toronto, Calgary, Chicago and Miami.

The whole process, from application through shareholder approval, is expected to take between nine and 12 months.

Currently trading on both the New York Stock Exchange and the Toronto Stock Exchange, TFI will not be delisting from the Canadian market as part of the move.

The expected move comes amid a tense backdrop in U.S.-Canada relations.

President Donald Trump’s threat to slap 25 percent duties on all imports from Canada still hangs in the balance even after the tariffs were deferred to March 4. Canada is also expected to start paying 25 percent tariffs on any steel and aluminum products entering the U.S. starting March 12.

If the countries don’t cut a border security deal before March 4 and Trump moves ahead with imposing the duties, Canada would place retaliatory tariffs on imports from the U.S.

According to Bedard, the tariffs and their potential impacts on cross-border trade—as well as inflation concerns—have prevented the trucking firm from issuing guidance.

TFI may not be alone in its Canadian exodus plans. In the current geopolitical climate, more Canadian businesses are looking to invest in U.S. assets. Forty-eight percent of 250 Canadian companies surveyed by KPMG plan to shift investments to the U.S. and set up operations or production south of the border to serve the U.S. market and reduce costs.

“The new U.S. administration’s economic and trade policies are having huge ripple effects in Canada and around the world,” says Lucy Iacovelli, managing partner, tax and legal, KPMG in Canada, in a statement. “There are important steps that Canadian businesses can take to prepare for trade disruption and higher costs and build resiliency. No matter when or if U.S. tariffs or tax cuts take effect, now is the time to be proactive and understand your exposure and develop mitigation strategies.”

One of TFI’s Canadian shareholders, pension fund Caisse de Depot et Placement du Quebec (CDPQ), shared its dismay with the decision. CDPQ owned a more than 4 percent stake in TFI as of Dec. 31, according to data compiled by Bloomberg.

“The company has not informed us of its intentions, and we will express our dissatisfaction,” a CDPQ spokesperson said in a statement. “Quebec’s interests are always at the heart of our priorities as a shareholder.”

‘The volumes are not there,” CEO says amid ‘disaster’ quarter

TFI International’s fourth quarter reflected trucking industry fears that the freight recession still pervades, with Bedard not holding back on his assessment of the period in the earnings call

“Q4 was a disaster for us,” he said, citing the trucking company’s poor management of labor costs and accident claims that reached 0.9 percent of total revenue.

Stock feel for more than 20 percent on the report Thursday.

Revenue rose 5.5 percent to $2.08 billion from $1.97 billion. Analysts were looking for $2.19 billion, according to FactSet.

“We’re like our peers. It’s really a very difficult start of the year. It’s very foggy,” said Bedard. “The volumes are not there. So it’s going to be a difficult 2025. When we made our plan in October for 2025, we never anticipated this kind of situation, which is still difficult in terms of volumes, both truckload and LTL.”

TFI posted a profit of $88.1 million, or $1.03 a share, in the fourth quarter, compared with $131.4 million, or $1.53 a share, a year earlier. Adjusted per-share earnings came in at $1.19 a share, missing the $1.58 analysts surveyed by FactSet expected.